Revenue collection remains steady

Kathmandu, Nov. 17: Despite disruptions and 'brief uncertainty' created by the Gen Z movement in September 8-9, the government's revenue collection registered a steady growth over the first four-month of the current Fiscal Year 2025/26. 

According to the statistics of the Financial Comptroller General Office (FCGO), the government has collected Rs. 329.3 billion in revenue from mid-July to mid-November (by Saturday). The collected amount is 21.48 per cent of the annual target of Rs. 1533.44 billion. 

During the same period in the last FY 2024/25, revenue collection stood at 22.1 per cent of the annual target Rs. 1471.62 billion. 

The budget of the current FY targeted to raise Rs. 1325.5 billion in tax revenue, Rs. 154.4 billion in non-tax revenue and Rs. 53 billion in grants. Progress in these sectors is 22.89 per cent, 12.66 per cent and 6.51 per cent, respectively. 

Last year, no grants were collected during the first four months while tax revenue remained 22.39 per cent of the annual target of Rs. 1325.58 billion, and non-tax revenue witnessed a progress of 12.66 per cent of the target of Rs. 154.4 billion.

Spokesperson of the Ministry of Finance (MoF) Tanka Prasad Pandey said that this year has witnessed about 7 per cent growth in overall revenue collection. "Only income tax has been slightly affected. Customs revenue, excise duty and Value Added Tax (VAT) all witnessed a positive growth," he said. 

According to Pandey, growth in imports and exports (domestic production) went up significantly while the initial projections of tourism sectors failure did not happen. "At the same time, the MoF is implementing measures to check revenue leakage," he stated. In the past two months, the Ministry has convened at least two meetings to address the potential revenue leakage. 

Meanwhile, execution of development budget remained pathetic with just 6 per cent progress. Of the development budget of Rs. 407.88 billion, only Rs. 24.6 billion has been used while the progress was almost 10 per cent last year with the mobilization of Rs. 34.37 billion. 

However, in recent years, a good progress has been seen in the use of financing – the budget allocated to pay the capital and interest of the public loan and make investment by the government. In the first four months this year, the government has paid Rs. 122.58 billion (almost one third of the budget earmarked for it) in loan settlements. This year's budget has allocated Rs. 375.24 billion for financing.

This achievement is higher than the last year when the government paid Rs. 87.7 billion (23.88 per cent) of the allocated amount - Rs. 367.38 billion. 

Finance Minister Rameshore Prasad Khanal has decided not to make any investment or put additional capital to government-owned companies.